Electric Vehicle (EV) Hub Motor Market Size, Share & Industry Analysis, By Vehicle Type (E-bike and E-2 wheeler), By Power Output (Below 1000W, 1001-3000W, and Above 3000W), By Component (Stator, Rotor, Bearing & Shaft, Magnet, and Others (wiring, casing), By Position Type (Rear Hub motor and Front Hub Motor), and Regional Forecast, 2024 – 2032

The global electric vehicle (EV) hub motor market size was valued at USD 26.25 billion in 2023. The market is expected to grow from USD 29.46 billion in 2024 to USD 82.03 billion by 2032, exhibiting a CAGR of 13.7% during the forecast period.

An electric vehicle hub motor market refers to the industry involved in the manufacturing, sales, and distribution of hub motors specially designed for hub motors. The hub motor or hub-drive motor is mounted directly into the hub of the wheel, providing a decentralized and compact propulsion system. This market encompasses a range of components and services related to these electric motors, including their production, technological advancement, and integration into various types of electric mobility, such as electric bikes (e-bikes), electric mopeds, and electric motorcycles. The increasing demand for electric bikes in North America and Europe, along with the rising popularity of electric two-wheelers in the APAC region due to growing awareness of environmental challenges, rising fuel costs, and the emphasis on sustainable transportation, is anticipated to drive market growth during the forecast period.

The COVID-19 pandemic had a positive impact on the global market. The increased production and sales of EVs, including e-bikes, electric scooters, and motorcycles, contributed to the growth of the market. Moreover, the sales and production of electric two-wheelers witnessed a slight increase due to favorable government policies and subsidies. Governments worldwide introduced stimulus packages to revive the economy during and after the pandemic, leading to an increased demand for electric bikes and boosting market growth. For instance, in March 2021, bicycle sales in the U.S. rose by 65% between 2019 and 2020, according to the World Economic Forum, with electric bike sales experiencing a 145% increase during the period. In Europe, it is predicted that the e-bike volume will double compared to the number of bikes and cars accepted every year by 2030.

Electric Vehicle (EV) Hub Motor Market Trends

Technological Innovations for Enhanced Performance is an Ongoing Trend

Manufacturers are intensifying their focus on enhancing the power density of hub motors. This involves developing motors that provide more power while maintaining a compact and lightweight design, contributing to improved overall vehicle performance. The use of lightweight materials, such as advanced composites and alloys, reduces the overall weight of hub motors and enhances the energy efficiency of electric vehicles. The rising collaboration and partnership among key market leaders for the development and research of hub motors are expected to drive the electric vehicle hub motor market growth in the coming years.

For instance, in February 2023, The FLASH signed a partnership contract with GEM Motors to manufacture hub motors for different EV segments ranging from 1 kW to 15 kW. The company provides flexible and modular motor design. FLASH can deliver motors with customization and a faster turnaround time. The company aimed to reach USD 12.06 million in revenue (turnover) in the first year of launching electric vehicle-related parts and aims for YoY exponential growth.

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Electric Vehicle (EV) Hub Motor Market Growth Factors

New Launches and Rising Popularity of Electric Two Wheelers to Propel Market Growth

The increasing trend of urbanization and the surge in micro-mobility solutions, such as electric bikes and scooters, are contributing to the demand for compact and lightweight hub motors. These motors are well-suited for smaller, agile vehicles used in urban commuting. The global shift toward endurable transportation has led to a surge in the popularity of electric two-wheelers, such as e-bikes and electric scooters. These vehicles offer eco-friendly alternatives for short-distance commuting. This growing acceptance is a crucial factor driving the demand for the electric vehicle hub motor market, further boosted by the number of new launches of electric two-wheelers by manufacturers/OEMs.

For Instance, In July 2023, Ola introduced its new electric scooter, OLA S1 Air, receiving 3000 bookings for the entry-level S1 Air. Equipped with a 3kWh battery pack offering a 125km range on a single charge, paired with a 4.5 kWh hub motor, the S1 Air accelerates from 0-40 km/h in just 3.3 seconds with a top speed of 90 km/h.

RESTRAINING FACTORS

High Initial Cost of Hub Motor May Hamper Market Growth

The restraining factor in the market for electric vehicle hub motor is the high cost of electric bikes, and hub motors for electric two-wheelers are one of the challenges that limit market growth. The cost of manufacturing and integrating advanced electric propulsion systems, including hub motors, can make EVs more expensive than traditional vehicles. The choice of motor used in electric two-wheelers directly influences their cost. This cost barrier can deter some potential buyers from adopting electric scooters/moped and e-bikes.

Electric Vehicle (EV) Hub Motor Market Segmentation Analysis

By Vehicle Type Analysis

Rising Sales & Adoption of E-bikes by Consumers Drives the E-bike Segment Growth

Based on vehicle type, the market is divided into e-bike and e-2 wheeler. The e-bike segment holds the largest share of the market. The growth of the segment is attributed to the rising adoption of a wide range of e-bikes for different applications, such as city e-bikes, mountain bikes, cargo bikes, and folding bikes. These developments are anticipated to propel the segment’s growth during the forecast period. 

By Power Output Analysis

Increasing Urban Mobility & Energy Efficiency Drives the Below 1000W Segment Growth

Based on power output type, the market is segregated into below 1000W, 1001-3000W, and above 3000W.

The below 1000W segment holds the maximum market share. Lower-powered hub motors are ideal for urban commuting and short-distance travel, making them well-suited for electric vehicles in densely populated areas. These motors provide sufficient power for city driving and are more energy-efficient in traffic areas, aligning with the trend of smaller, and more energy-efficient vehicles. This dynamic, focusing on increased city driving and energy efficiency, is a key driver.

The 1001-3000W segment registers the second largest market share due to performance enhancement. Advances in motor and battery technologies have allowed manufacturers to optimize the performance of hub motors, making them more attractive in terms of efficiency, reliability, and overall performance.

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By Component Analysis

Magnet Segment’s Dominance is led by Magnet’s High Efficiency in Electric Motors

Based on component, the market is segregated into stator, rotor, bearing and shaft, magnet and others (wiring, casing).

The magnet segment holds a largest market share. Magnets play a significant role in the efficiency of electric motors. Magnet motors are known for their high efficiency, which translates to better energy utilization and longer battery life in electric vehicles.

The ongoing advancements in materials, manufacturing technologies, and design methodologies in the rotor, bearing, and shaft components contribute to the continuous improvement of these components. These innovations aim to enhance efficiency, durability, and overall performance, making them more attractive to manufacturers and consumers.

By Position Type Analysis

Ease of Installation, Balanced Weight Distribution, and Simplicity of Integration to Boost Rear Hub Motor Segment Growth

Based on position type, the market is segmented into rear hub motor and front hub motor.

The rear hub motor segment holds the maximum market share. Rear-mounted hub motors are relatively easy to integrate into existing vehicle designs, especially for retrofitting conventional vehicles into electric ones. Rear hub motors are typically simpler to install compared to other configurations. Placing the motor at the rear contributes to a more balanced weight distribution, enhancing overall stability and handling characteristics, which is a crucial factor for performance and safety. Thus, increasing the performance and safety of electric vehicles boosts the segmental growth during the forecast period.

The front hub motor segment secures the second-largest market share due to design flexibility, cost consideration, and space efficiency. This development is anticipated to fuel the segment’s growth in the electric vehicle hub motor sector.

REGIONAL INSIGHTS

Based on geography, the market is studied across Europe, North America, Asia Pacific, and the rest of the world.

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Asia Pacific market for electric vehicle hub motors, which stood at USD 22.24 billion, dominated in 2023 and is poised to continue its dominance throughout the forecast period, with the fastest-growing CAGR. Asia Pacific, particularly China, is emerging as a significant market for electric vehicle hub motors. The accelerating adoption of electric two-wheelers & e-bikes in India, Japan, South Korea, and others, coupled with supportive government policies, is driving the demand for the hub motor market.

Europe's market for electric vehicle hub motors registers the second-largest share due to the early adoption of electric bikes in the region. Manufacturers are heavily investing in electric bicycle production, driving the adoption of electric vehicle components such as motors and drive units. Such developments fuel the market growth in the region.

The rising demand for electric vehicles (electric bicycles) in North America fuels the market growth. The increasing consumer demand for e-bikes & electric two-wheelers due to government incentives, advanced technology, and environmental concerns is poised to drive the adoption of electric vehicles, escalating the market growth.

List of Key Companies in Electric Vehicle (EV) Hub Motor Market

Market Players Emphasize Advanced Hub Motor Technology to Gain Competitive Edge

Key players include Robert Bosch GmbH, QS Motors, and GEM Motors. The manufacturers focus on advanced hub motor technology and provide electric vehicle hub motors for various vehicles worldwide.

Robert Bosch is a German-based global engineering and technology company operating in four main business segments, namely, mobility, consumer goods, industrial technology, and energy & building technology. In June 2021, Bosch launched its newly built semiconductor manufacturing plant in which it invested USD 1.2 billion, its largest-ever spending on a single project. The investment was made to upscale its powertrain electro-mobility fuel cell segment.

List of Key Companies Profiled:

• Robert Bosch GmbH (Germany)


• QS Motors (China)


• Kolektor (Slovenia)


• Printed Motor Works (U.K.)


• NSK Ltd. (Japan)


• NTN Corporation (Japan)


• GEM Motors (Slovenia)


• Magnetic Systems Technology (U.K.)


• e-Traction B.V. (Netherlands)


• Hyundai Mobis (South Korea)


• YASA Limited (South Korea)


• ECOmove GmbH (U.K.)


• Tajima Motor Corporation (Japan)


• Ananda (China)


• Suzhou Tongsheng Electric Appliances Co., Ltd. (China)


• Suzhou Shengyi Motor Co., Ltd. (China)


• Bafang Electric (Suzhou) Co., Ltd. (China)


• Leaf Bike (China)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Bosch announced that the company will introduce a next-generation electric wheel hub motor. Bosch is working to develop highly efficient drive solutions in an effort to help vehicle manufacturers reduce emissions. The Bosch Drive Control Unit combines the inverter, engine management system, and vehicle control in one compact component. In conjunction with the wheel hub motor, the Drive Control Unit can be used to implement comfort functions such as a smoother starting mode (Smooth Riding) or cruise control to maintain speed.


• October 2023: GEM Motor signed a strategic partnership agreement with Stilride to develop a specialized advanced electric drive.  Stilride presented an electric scooter that will be available to Swedish customers in an exclusive limited series in spring 2024 and will be powered by an innovative GEM in-wheel drive G2.6.


• October 2021: Yamaha Motor Co., Ltd. signed a joint venture with Hero Motors Limited for the manufacture of Hub-mounted drive units for electrically power-assisted bicycles (e-Bikes). The joint venture is scheduled to be established by the end of November 2021, with Yamaha Motor holding a 10% stake and Hero Motors holding the remaining 90%.


• September 2021: Suzhou Tongsheng Electric Co., Ltd. completed its presentation at the Eurobike show Friedrichshafen. At the event, the company showcased its latest mid-drive system, hub motors, displays and other products, primarily the TSDZ5 mid-drive system and the latest displays. LLM motor provides a durable motor with long-term components to ensure longer life of the drive systems.


• August 2021: Bafang Electric (Suzhou) Co., Ltd. introduced the H700 built-in automatic dual-speed drive system. The company has the best motor and system solutions for a wide range of categories, such as front-drive, mid-drive and rear-drive systems. The H700 motor automatically changes the gearbox ratio by detecting the rate of the vehicle during cycling. It can get a better tempo without manually moving and greatly enhance riding comfort without affecting the power of the motor.

REPORT COVERAGE

The electric vehicle hub motor market research report provides a detailed analysis focusing on key aspects such as leading market players, competitive landscape, and vehicle type. Besides this, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

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